The EU is soon to open negotiations with Bosnia and Herzegovina on a Stabilisation and Association Agreement (SAA), a first major step in the European integration process.

The Commission underlined, however, that Bosnia and Herzegovina must, in particular, continue to improve cooperation with the International Criminal Tribunal for former Yugoslavia (ICTY), adopt the remaining Law on Public Broadcasting and ensure the implementation of the police reform.

The opening of negotiations on an SAA agreement requires the Council's green light. The agreement aims to promote economic and trade relations, with the perspective of establishing WTO-compatible free trade after a transitional period.

It will also bring the country closer to the European standards in regulating the movement of workers, freedom of establishment, supply of services and movement of capital. It will include a commitment by Bosnia and Herzegovina to progressive harmonisation of its legislation with that of the Community.

What is the Stabilisation and Association Process (SAP)?

The SAP is the EU's policy for the countries of the Western Balkans region. The Stabilisation and Association Agreement (SAA) is the final stage of that policy, creating a contractual relationship between a country and the European Union. The SAP is accompanied by a generous financial assistance programme, called Community Assistance for Reconstruction, Development and Stabilisation (CARDS).

The EU has already signed an SAA with the former Yugoslav Republic of Macedonia and Croatia, and is currently negotiating an SAA with Albania and Serbia and Montenegro.